Airbnb Introduces ‘Reserve Now, Pay Later’

• Airbnb’s new payment option allows U.S. travelers to book stays without upfront payment, potentially increasing bookings and offering more competitive options against traditional travel agencies.
• Despite concerns, Airbnb ensures hosts will receive payments according to their existing policies, maintaining booking reliability.

Airbnb has officially launched a “Reserve Now, Pay Later” option for travelers in the United States, aiming to provide greater booking flexibility and potentially increase stays for hosts. This new feature allows guests to reserve eligible domestic accommodations without any upfront payment, as long as they choose listings with moderate or flexible cancellation policies. Payment is required before the end of the free cancellation period, ensuring hosts can still secure bookings if a reservation is canceled.

The initiative follows a successful test earlier this summer, despite initial concerns from some in the vacation rental community about potential risks of increased cancellations. Airbnb reassures that the feature aligns with existing policies, allowing cancellations up to 24 hours or five days before check-in for a full refund. Hosts will continue to receive payouts as per their regular cancellation timelines.

Airbnb’s spokesperson highlighted that hosts have generally been receptive to tools that might boost demand. The company is optimistic that this added flexibility will lead to more bookings over time. Although specific data from the trial period wasn’t disclosed, Airbnb is considering expanding the feature to additional locations.

This new payment option complements Airbnb’s existing “Pay Part Now, Part Later” and “Pay Over Time With Klarna” options, and follows the company’s recent earnings report, which showed high guest satisfaction with new features despite some post-launch criticism.

Discover more at PhocusWire.